(Note: OLPM sections on this page may be cited following the format of, for
example, "UNH.VIII.N.1.1".
These policies may be amended at any time, do not constitute an employment contract,
and are provided here only for ease of reference and without any warranty of
accuracy. See OLPM Main Menu for details.)

N. Program Income on Externally Sponsored Programs

1.Definitions

1.1 Program income is the gross income directly generated by a sponsored activity or earned as a result of an externally funded
award. Program income includes, but is not limited to, income from program event registration fees, fees for services
performed, use or rental of real or personal property, sale of commodities or items fabricated, license fees and royalties on patents and copyrights, and interest on
loans made with award funds. Unless otherwise provided in the sponsor's regulations or the terms and conditions of an award, program income
does not include interest earned on advances of award funds nor the receipt of principal on loans, rebates, credits,
discounts, etc., or associated interest.

1.2 "Project period" means the period established in the externally sponsored program or project award document during which sponsor
funds are allowed to be spent by the awardee.

2.Policy

2.1 This policy applies to all externally sponsored grants and agreements at the University of New Hampshire (UNH) regardless of the
source of sponsorship. This policy does not apply to externally sponsored contracts unless dictated by the terms and conditions of a specific contract.

2.2 Anticipated program income must be declared in the proposal or application to the prospective sponsor. Unanticipated program income
realized during the project period must be reported promptly to the sponsor with a request for disposition instructions as noted below.

2.3 Program income earned during the sponsored program project period is administered
according to one of the following methods as specified by sponsor policies and/or the terms of the award:

Additive Method: Program income will be added to funds committed to the project by the sponsor
and UNH, and used to further eligible program or project objectives.

Cost-sharing Method: Program income will be used to finance in part or in total any required
non-sponsor share of the program or project.

Deductive Method: Program income will be deducted from the total project allowable costs in
determining the net allowable costs on which the sponsor's share is based.

2.4 Salaries and wages paid from a program income account are assessed fringe benefits charges at UNH's federally-approved rate for
externally sponsored programs. Similarly, all direct costs are subject to Facilities & Administrative (F&A) cost charges at the same rate charged to the sponsored
award itself.

2.5 To ensure proper reporting and record keeping for audit purposes, program income must be accounted for separately but in
conjunction with the sponsored program award it supports. Expenses to program income accounts must not exceed budgets. Any deficit of program income expenses against
program income revenues at the end of the project period must be resolved with UNH non-restricted funds by mutual agreement of the program or project director and the
relevant Responsibility Center (RC) unit head or designee.

2.6 The RC unit is responsible for maintaining all documentation on how program income is generated and how it is spent. Deposit
slips, copies of checks, and registration forms are acceptable forms of documentation. This information will be required as supporting material in the event of an audit.

2.7 Unless otherwise provided by a sponsor's regulations or the terms and conditions of a specific award, the University has no
obligation to the sponsor regarding program income earned after the end of the project period. Accounting for such program income is the responsibility of the relevant
Responsibility Center (RC) unit. The UNH fringe benefits rates in effect during the post project period are assessed on post project period program income salaries
and wages; administrative charges are assessed in accordance with concurrent UNH policies.

2.8 Unless otherwise provided by a sponsor's regulations or the terms and conditions of a specific award, the University has no
obligation to the sponsor for program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions
produced under an award. However, Patent and Trademark Amendments (35 U.S.C. 18)
require reporting of inventions made under an experimental, developmental, or research award funded in part or in full with Federal funds.